The bill introduces significant modifications to property tax regulations and local government practices in Iowa, focusing on property assessment, taxation, and the establishment of new programs. Key provisions include the introduction of a homestead exemption that replaces the existing homestead credit, with a specified exemption amount of $4,850 for eligible homesteads. The bill also establishes a FirstHome Iowa program, allowing residents to invest in a public trust for future homebuyer expenses, and creates a local government shared-services grant fund to encourage collaboration among municipalities. Additionally, it sets new limitations on unassigned reserve funds for governmental entities and prohibits the use of bonds for general operations after July 1, 2026.

The legislation further modifies the assessment frequency for properties from every two years to every three years starting in 2025 and shifts the burden of proof in property valuation disputes to assessors under certain conditions. It also includes provisions for the appointment of county officers, transitioning roles such as the county auditor and treasurer from elected to appointed positions by the county board of supervisors. The bill aims to enhance fiscal responsibility, streamline governance, and improve the efficiency of property tax administration while ensuring compliance with updated regulations.

Statutes affected:
Introduced: 11.11, 331.403, 24.35, 444.25, 331.510, 441.21, 10A.518, 25B.7, 103.22, 499B.2, 216.12, 321.1, 48A.2, 331.559, 404.3, 425.1, 35.1, 425.1A, 425.4, 425.6, 425.7, 425.2, 425.10, 425.11, 425.12, 425.13, 425.16, 425.23, 425.22, 425.26, 425.27, 422.26, 425.30, 425.31, 425.32, 425.37, 427.9, 249.1, 435.26, 435.26A, 435.22, 483A.1, 423F.2, 403.2, 403.3, 403.5, 403.19, 403.6, 403.17, 403.18A, 403.9, 428.4, 441.28, 441.30, 441.49, 441.35, 441.33, 8.33, 232D.503, 422.7, 12L.3, 627.6, 633.108, 633.555, 633.678, 633.681, 43.24, 44.7, 44.8, 331.324, 331.322, 63.10, 331.434